By Manuela Mesco
MILAN--Italy's largest telecommunications company Telecom Italia
SpA (TIT.MI) said Friday it didn't completely meet its 2012 targets
in terms of gross operating profit and net debt reduction, as it
approved its preliminary financial results for last year.
The Italian company said its Earnings before interest, tax,
depreciation and amortization or Ebitda stood at 11.66 billion
euros ($15.62 billion) while its year-end target was to keep it
almost unchanged compared with EUR12.25 billion in 2011. Net debt
stood at EUR28.27 billion as of Dec. 31, 2012--the target was to
reduce it to EUR27.5 billion.
The results matched analysts' expectations polled by Dow Jones
Newswires, which saw 2012 Ebitda at EUR11.77 billion and revenue at
EUR29.58 billion.
The group's revenue came in at EUR29.5 billion, down 1.5%
compared with 2011, pressured by lower revenue from the domestic
business unit, offset by improvements for Argentinian and Brazilian
units. Revenue in the Italian domestic market fell 5.8% to EUR17.88
billion.
Italy's largest telecoms company, whose credit ratings could be
at risk of downgrade because of its failure to meet net debt cut
targets, will present its new 2013-2015 strategy plan later on
Friday, in which analysts also expect updates on the company
dividend yields.
Last year the dividend stood at EUR0.043 per ordinary share,
which amounted to a total of EUR900 million.
Missing the net debt reduction target was also down to the
company not selling its broadcasting unit, Telecom Italia Media
(TME.MI).
Thursday, Telecom Italia Media reported a preliminary gross
operating loss of EUR44.8 million, compared with a gross operating
profit of EUR27.3 million in 2011. The company's net debt rose to
EUR260.1 million at the end of December, up from the EUR224.1
million three months earlier.
Telecom Italia said it will discuss the sale of the unit at a
later board meeting.
On top of the two existing offers presented in December last
year, a third expression of interest from broadcaster Europa7 has
reached Italy's telecoms company this week, a person close to the
matter said Thursday.
This adds up to two original offers from Cairo Communications
SpA (CAI.MI) and private equity fund Clessidra. The second bidder
said it improved its original offer, which is only for La7 TV
channels and not for the whole company.
Telecom Italia will present a strategy plan for the coming years
before markets open on Friday.
Write to Manuela Mesco at manuela.mesco@dowjones.com
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